Be Prepared — What You'll Need

Getting your loan is the most important piece of the puzzle toward
owning a home.

If you are paying cash, you will need to show proof of
funds in the amount of the contract purchase price. This is easily
done by obtaining a letter from your financial institution verifying
that you have the money in your account.

If you need a mortgage, please gather the following
prior to your meeting with your lender.

Income Items

W2 forms for the last two years

Most recent pay stubs covering a 30 day period

Federal tax returns (1040's) for the last two years, IF:

you are self-employed

earn regular income from capital gains

earn sizable interest income, etc.

earn more than 25% of your income from commissions or
bonuses

own rental property

or are in a career where you are likely to take
non-reimbursed business expenses).

Year-to-Date Profit and Loss Statement (for self employed)

Corporate or Partnership tax returns (if you own more than 25%
of the business)

Pension Award letter (for retired individuals)

Social Security Award letters (for those on Social Security)

Asset Items

Bank statements for previous two months (sometimes three) on all
accounts. All pages, even if you don't think them important.

Statements for two months on all stocks, mutual funds, bonds,
etc

Copy of latest 401K statement (or other retirement assets
because they can count as reserves)

Explanations for any large deposits and source of those funds

Copy of HUD1 Settlement Statement on recent sales of homes

Copy of Estimated HUD1 Settlement Statement if a previous home
is for sale, but not yet closed

Gift letter (if some of the funds come as a gift from a family
member -
the lender will supply a blank form)

Gifts can also require:

Verification of donor's ability to make the gift (bank
statement)

Copy of the check used to make the gift

Copy of the deposit receipt showing the funds deposited
into bank account or escrow

Note: many get their statements of various kinds over the
internet and these are not always acceptable to lenders,
especially when the printed version does not contain the
borrower's name, account number, AND the name of the
institution.

Credit Items

Landlord's name, address, and phone number (if you rent)

Explanations for any of the following items which may appear on
your credit report:

Late payments

Credit inquiries in the last 90 days

Charge-offs

Collections

Judgments

Liens

Copy of bankruptcy papers if you have filed bankruptcy within
the last seven years